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Should do 30 -40% in the next few days if not today
Chris Evans, Chief Executive commented: "The Group has delivered a robust performance as a result of our successful acquisition strategy, underpinned by strong organic growth in our Managed Hosting division. We have delivered on all of our objectives for the 2016 financial year. We are seeing our order book grow and believe we are well positioned to benefit from the increasing adoption of cloud delivered services and additional non-organic growth opportunities."

Trying to get on top of these full year results. I haven't seen an actual results annoucement from the company itself a this point.

FY EBITDA of £411k means they made £500k in the second half of the year. Their net loss for the year of £84k is very disappointing as they lost had already £79k in the first half, so they made nothing in the second half. So they made a big improvement in sales and EBITDA but there must have been some other non-operating coststhat came through. It will be very interesting to see what those were and what their cash generation/loss was when some detail is published

Most importantly, they have told us the full year results will show a significant improvement in sales and EBITDA over 2014 (£2.33m, £0.05m loss respectively), well ahead of market expectations, that all businesses are EBITDA positive and that they had net cash at year end of £130k and total cash £400k; with these numbers I am looking for them to make a net profit this year (maybe £100-200k) despite the £100k loss after H1.

Given that, the 2 senior board members buying shares and the encouraging looking forward pipeline from their acquisitions and re-organisation, I think the shares have upside. I am a small holder and won't add until I see hard evidence of this (this is still an extremely risky investment) but I will be looking at their announcement on 22nd with interest.

The risk of dilution was and will continue to be a big factor here given their buy & build strategy but this acquisition looks ok to me. 21.75m shares, 5% of the current share capital, issued but pretty much at mid market, 2p. I'm happy this wasn't discounted heavily and hopefully they wouldnt have done it if they had been forced to do it that way. £156k of EBITDA and cross sell opportunities to grow that. Decent execution of their stated strategy and hopefully more of the same to come.

No-one else on this bb but i've decided to sometimes post so I can record my thoughts on them over time and have something to refer bank to! I'm sure if the SP starts going up, people will quickly join

Extrapolating Netplan's revenue contribution to a full year, allowing for total gross profit expansion from 55% to 60%, assuming admin expenses don't grow (not sure how likely that is), but without assuming there are any big Netpan contract wins, to me it looks like in 2015 they could make a net profit of something like £300-400k (from a £675k loss this year), equivalent to 0.1p of EPS and a PER of 20. Without any meaningful contract wins that PER could come down quickly. With another £1m of revenues, say from some big contract wins, that PER migth come to more like 10 and the shares look very attractive. That is all hypothetical for now.

One main concern I have is the risk of dilution. They have £275k of convertible loan stock outstanding which can be converted at 3p in 2015 and I think 2016 -- that is relatively small vs the market cap of £9m now and £14-15m if the shares were at 3p, so overall not a big problem. They took the issued share capital of the company during the year up from 118m to a whopping 472m shares to finance the Netplan acquisition. They have around £1m of cash left but given they want to grow by acquisition it is possible at some point they issue more shares.That could be a bigger issue.

An interesting story to follow and if contract wins come through at Netplan they could start to look pretty cheap and I will be adding.

Today's RNS suggests Netplan is performing well and is on a run-rate of at least £550k (probably more like £560-570k) of EBIT for 2014 compared to the £425k disclosed for 2013. Lots of risk here and they might run out of cash, but things appear to be going pretty well and they have told us they are profitable month by month. Results are at the end of June at which point hopefully we will get a better feel for what the year to March 2015 could hold. I am cautiously optimistic but not ready to add until there is more evidence of sustainable growth in EPS without the constant need to dilute shareholders.

Looks like an encouraging update with all parts of the business growing. Clearly what we need to see is more contract wins for Netplan..thats what will get the shares moving. Here's hoping for small rise today on the back of this news.

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